Nigeria’s renewable energy sector has attracted more than $2 billion in investment but generated only about 76,000 jobs, highlighting a significant gap in local workforce participation and industrial capacity, according to the Rural Electrification Agency (REA).
Speaking at the 2026 Oriental News Conference in Lagos on Thursday, REA Managing Director Dr. Abba Aliyu said Nigeria must shift from relying heavily on imported renewable energy technologies to building domestic manufacturing, technical expertise and local supply chains if it hopes to achieve a sustainable energy transition.
Aliyu, who was represented by Gboyega Ayoade, Executive Director of Corporate Services at the REA, said the country’s clean energy strategy should serve not only environmental goals but also industrial development and employment creation.
He noted that while the global solar industry supports about 16.2 million jobs, Nigeria’s renewable energy sector has created only around 76,000 jobs, despite billions of dollars in investment.
“The figures clearly show that Nigeria must deliberately develop local capacity,” he said. “Energy policy must also function as industrial policy by promoting Nigerian participation rather than long-term dependence on imported equipment and foreign expertise.
Aliyu stressed that renewable energy expansion should stimulate domestic industries through local assembly, manufacturing, installation, maintenance, recycling and skills development.
He said every renewable energy project should be evaluated not only by the amount of electricity generated but also by its contribution to Nigeria’s economy.
According to him, policymakers should assess whether projects create employment opportunities for Nigerian engineers and technicians, engage local installers, support domestic manufacturers, strengthen supply chains and facilitate technology transfer.
“This is how clean energy becomes an instrument of industrial policy,” he said.
The REA chief added that the agency is restructuring its programmes to align with the Federal Government’s Nigeria First policy, positioning renewable energy deployment as a driver of industrial growth.
He explained that large-scale renewable energy projects create predictable demand, which encourages manufacturers to invest locally, creates jobs, strengthens supply chains and ultimately reduces project costs.
Aliyu identified inadequate project preparation and weak financing structures—not technology—as the biggest barriers to accelerating renewable energy deployment.
He said many clean energy projects fail to secure investment because they lack robust feasibility studies, credible demand assessments, reliable payment mechanisms and comprehensive risk mitigation frameworks.
“The major challenge is bankability,” he said.
He noted that investors are more willing to finance projects that demonstrate sound technical preparation, transparent revenue models, strong environmental and social safeguards, effective community engagement and clearly allocated risks.
To address these issues, the REA is collaborating with development finance institutions, commercial lenders and private-sector developers to improve project preparation and financing.
The agency is deploying instruments such as performance-based grants, minimum subsidy frameworks, blended finance models, demand aggregation, public-private partnerships and green finance platforms to make renewable energy investments more attractive.
Aliyu said Nigeria’s decarbonisation agenda should extend beyond reducing greenhouse gas emissions to encompass economic competitiveness, industrialisation, energy security and inclusive development.
Speaking on the theme, “Driving Nigeria’s Decarbonisation through Strategic Promotion of Clean Energy: The REA Experience,” he argued that climate action must reflect Nigeria’s development priorities.
“For Nigeria, decarbonisation cannot simply be about emissions reduction,” he said. “It must also strengthen competitiveness, industrial renewal, energy security, financing, technology adoption and inclusive economic growth.”
He called for an integrated regulatory framework linking the energy, finance, environment, manufacturing and investment sectors to support long-term clean energy development.
According to him, regulations governing emissions management, carbon capture, gas flaring reduction, sustainable finance and environmental reporting in the oil and gas sector should be harmonised, while rules covering mini-grids, embedded generation, net metering, electricity storage and distributed energy resources should continue evolving to support innovation.
Aliyu said Nigeria’s growing population, expanding electricity demand and infrastructure deficit require a pragmatic approach that simultaneously improves energy access, drives industrialisation and reduces carbon emissions.
He noted that millions of Nigerians still lack reliable electricity, businesses continue to grapple with high energy costs, public institutions remain dependent on diesel generators and rural communities require electricity to support productive economic activities.
“The challenge is not simply reducing emissions,” he said. “The real task is expanding electricity access, growing the economy, industrialising and lowering emissions at the same time.”
He maintained that decentralised renewable energy systems—including mini-grids and solar-powered infrastructure—offer a practical pathway to achieving those objectives by improving electricity access, reducing operating costs and supporting economic development in underserved communities.
Aliyu concluded that Nigeria’s clean energy transition should be viewed not merely as an environmental obligation but as an opportunity to build domestic industries, create skilled jobs and strengthen long-term economic resilience.
